Utilities Avoid Big Losses

Amid Monday’s market turmoil, utilities were holding up better than all other sectors.

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It wasn’t exactly a safe harbor. But relative to others parts of the market, many utility stocks were avoiding big losses. No doubt their durable earnings and stable dividends appealed.

About 30 minutes before the closing bell, the utilities in the S&P 500 were down about 1.4% on average, compared with nearly 2.8% for the broader market. Most of the other 10 sectors in the S&P 500 were off by at least 2%--in some cases, including financials and technology, around 3%.

Utilities, which typically pay attractive dividends and are seen as bond proxies, can struggle as rates rise. So far this year, for example, the group is down about 5.5%, worse than the S&P 500’s result of minus 4%.

Among the utilities holding up reasonably well was NextEra Energy (NEE). Its stock was at $161 and change, down $2.2, or 1.37%.

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